Answer:
purchase the machine because the expected rate of return exceeds the interest rate.
Explanation:
Given the cost of machine = $2000
If the firm borrows fund at an interest rate of 10% to buy the machine,
Interest paid on the cost of machine = 10% of $200
= 10/100 × $2000
= $200
Total amount that must be paid back for the machine by the firm = actual cost of machine + interest rate
= $2000 + $200
= $2,200
Since the additional revenue generated from the machine after all operating cost = $2,300
Profit accrued by the firm = Revenue - (actual cost of machine + interest)
Profit accrued by the firm = $2,300-$2200
Profit accrued by the firm on the machine = $100
Based on the profit margin, it can be concluded that the firm can purchase the machine because the expected rate of return exceeds the interest rate.
Note that the expected rate of return is $300 (i.e $2300 - $2000) and the interest rate of is $200 (i.e 10% of $2000)
Among the luxury goods produced in Mongolia are luxury clothing made from the finest wools, hides, and skins there. The country also exports machinery and equipment. The Republic of China is the leading trading partner of Mongolia accounting to a percentage about 95.5%.
Answer: The monopolist will be able to sustain economic profits
Explanation:
If a monopolist in an industry characterized by monopoly features is making economic profit in the short run, then the monopolist will be able to sustain economic profits.
The economic profit is gotten when the explicit cost and the opportunity costs are both deducted from the revenues generated by a business.
Since there is high barrier to entry and the monopoly is the only firm in the market, then the monopolist will be able to sustain economic profits.
Answer:
4) what is analysis skill? why is it important in busines?
answer:
Analytical skills are important because they allow people to find solutions to various problems and make concrete decisions and action plans to solve those problems.
The important consideration for this company is that they
should think or have at least the idea of the patents, trade secrets and
copyrights are being treated differently by the countries in which is one way
of helping them of how they should struggle or do their way of doing things.
